Japan

Company Formation in Japan

Japan is ideally located to cater to the fast growing market with a large population in Asia. YourGlobalPro can assist in Japan for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

Japan is located in the Pacific Ocean, it lies off the eastern coast of the Asian mainland, and stretches from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the southwest – is a sovereign island nation in East Asia. The below content will explain you in detail about the requirements for company formation in Japan, know more about the process of trademark registration in Japan and understand the Japan Legal Compliance requirements.

Doing Business Introduction

Japan Economy is bigger than the UK and Germany – and considered to be world third largest and spend the highest on the research and development (R&D) worldwide. The Foreign Investor can reap long-term financial and strategic benefits in Japan.

As per the Doing Business Report of The World Bank, Japan ranks 34th in the 2017 survey. YourGlobalPro professionals are able to assist with any type of company formation, trademark registration and other recurring services for your business in Japan.

There are different types of entities that can be incorporated in Japan are as mentioned below:

Representative office

Branch office

A family Company

Partnerships

Subsidiary company

Joint-stock corporation (Kabushiki-Kaisha (K.K.)),

Limited liability company (Godo-Kaisha),

Time Frame for Incorporation of Company in Japan varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. YourGlobalPro estimates the time required for the process of Company formation in Japan to be completed is 15-18 working days.

Benefits of Registration of a Company

Japan is already the largest economy in Southeast Asia. Below are the advantages of company formation in Japan:

In Japan, tax year is basically the April to March. The Resident Company incorporated or domiciled is subject to income tax on worldwide income however but nonresident companies pay taxes only on Japanese-source income.

For trademark registration in Japan, an application needs to be made to Japan Patent Office. It takes approximately 6-8 months’ timeframe to complete the trade mark registration process. A Trademark Registration in Japan is valid for 10 years from the application date and can be renewed six months before the trademark right expires by payment of renewal fees for 10 years.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Japan for your business in Japan. For assistance or advise in the matter of the trade mark registration or intellectual property – please feel free to write or contact us.

Below are some of the important points in relation to Company Secretarial Compliance in Japan:

All companies must have registered office

No minimum capital requirement for a new joint-stock company or limited liability company

all types of joint-stock company to have a shareholders’ meeting and at least one director who is basically in charge of the operation of the business affairs of the corporation

In case of limited liability company fundamental matters like the amendment of articles of incorporation, conversion, mergers must be determined by the consent of all members

The Branch are required that balance sheet must be disclosed by public notice in Japan at the end of each financial year

Financial statements of corporations to be approved by the shareholders within 3 months from the financial year end.

Listed companies to file the audited financial statements to the Financial Service Agency (“FSA”) within 3 months from the financial year end and publish on the internet through Electronic Disclosure for Investors’ Network system

Most of the entities use the April to March calendar year as their accounting year and all accounting books, records and financial statements should be prepared using the Japanese language. In Japan, all the corporate entities required to prepare Financial Statement. The Listed Companies in Japan voluntarily adopt IFRS Standards.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Japan Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Japan, all company and Limited Liability Partnerships (“LLPs”) are required to prepare annual financial statements -however not all corporations and entities are required to have a statutory audit except one full fill the conditions mentioned specifically in Financial Instruments and Exchange Act, Companies Act and the Act on Securitization of Assets.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals can provide you auditing services for your business as required by your business.

Banking

The Bank of Japan controls inbound and outbound investments and transfers of money in Japan. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

The responsibility of Japan legal and compliance is not a one-time affair, but a continuous process. Below is the various Japan legal and compliance requirement to be followed by incorporated entities:

The Companies are required to create work rules and file them with the local Labor Standards Inspection Office

All corporation to file their tax returns to the National Tax Agency (“NTA”) within 2 months from the financial year end

YourGlobalPro professionals can assist you on Japan Legal and Compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Japan:

Foreign national wishing to enter Japan must have a valid passport and must contain a visa corresponding to his/her purpose of entry into Japan obtained in advance from a Japanese embassy

Visa requirement does not apply to entry by nationals of countries with which Japan has reciprocal visa exemption